Dealerships have complained the federal program was slow reimbursing them for rebates already given to customers. Some dealerships have said they would stop using the program because it has stretched their own finances to the breaking point, The New York Times reported Thursday.
GM has already said the program, which was an instant hit, was critical in their decision to revamp production and call 1,350 laid off employees back to work.
Dealerships pulling away from the program would undermine that momentum.
GM's Vice President for U.S. sales Mark LaNeve said, "we want to do all we can to
provide customers with timely new-vehicle deliveries and dealers the liquidity they need to run their businesses."
"Our sales performance in the past two months has exceeded our internal forecast by over 60,000 vehicles, largely driven by the CARS stimulus program," he said.
GM first said it was "not in a position" to help dealerships that were waiting for government checks. Later, it reversed its position, saying it would reimburse retailers for completed and new sales, the Times said.
Copyright 2009 by United Press International.
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